As a seasoned analyst with over two decades of experience in financial markets, I can confidently say that the recent turbulence in the crypto derivatives market is nothing new, but it does remind me of a roller coaster ride at an amusement park – exhilarating, unpredictable, and sometimes a bit terrifying.
Data shows that the crypto derivatives market has seen a large number of liquidations in the past day as Bitcoin has crashed to $59,000.
Bitcoin Has Seen A Sudden Crash Under $60,000 In The Last 24 Hours
In the previous day, Bitcoin’s market behavior left its investors astounded. Instead of continuing its upward trend from the past week, it unexpectedly dived, wiping out all the gains it had made during that period.
The chart below shows the asset’s trajectory over the last few days.
In the aftermath of this recent dip, the price of the coin fell below $59,000, however, it has since bounced back to $59,900. Even with this recovery, Bitcoin is still experiencing a decrease of approximately 4% over the past day.
Typically, other cryptocurrencies tend to mirror the downward trend set by the original one. Yet, several alternative coins have successfully limited their declines to a smaller extent than Bitcoin’s drop.
Considering the turbulence the entire sector experienced yesterday, it’s no wonder that the derivatives market has felt quite a jolt.
Crypto Derivatives Market Has Just Seen $319 Million In Liquidations
Based on information from CoinGlass, a significant number of cryptocurrency derivative contracts were forcibly closed over the past 24 hours due to their accumulated losses exceeding a specific threshold.
The following table provides the essential details about the most recent large-scale asset liquidation incident within the industry.
In this current period, approximately $319 million worth of crypto assets have been liquidated, with a staggering $261 million being shed by those holding long contracts. That’s more than 80% of the total liquidations, making it a significant chunk of the market.
In these times as a crypto investor, it’s not hard to understand the imbalance between long and short positions. This is largely due to the massive liquidation of derivative contracts triggered by the recent downturn experienced by Bitcoin and other cryptos during this particular phase.
As for the part each symbol played in these liquidations, it’s worth noting that Bitcoin and Ethereum, being the two leading coins in the industry, have emerged as the highest contributors.
It’s surprising that the difference between Bitcoin (BTC) and Ethereum (ETH) in terms of liquidations has been relatively small, typically BTC having significantly more liquidations. This is true despite the fact that both coins have had comparable negative returns.
It appears that Ethereum has been subjected to increased speculation than normal lately, as investors seem drawn to higher risk investments by taking on leverage. However, the volatility has resulted in many of these speculators being wiped out, leaving uncertainty about the asset’s interest level in the upcoming days.
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2024-08-28 23:41